Accra, Ghana – The Electricity Company of Ghana (ECG) is now in full compliance with directives designed to enhance transparency, efficiency, and regular cash flow within Ghana’s power sector, according to Energy and Green Transition Minister John Jinapor. Speaking at the Government Accountability Series on Wednesday, July 16, Mr. Jinapor revealed that he issued instructions in February 2025 for ECG to strictly adhere to the Cash Waterfall Mechanism (CWM).
The CWM is a financial framework established to ensure the equitable and timely distribution of revenue among all participants in the power value chain. “To bring about efficiency and compliance, in February 2025, I directed that ECG fully comply with the Cash Waterfall Mechanism. I also directed that they operate a single holding account, and that account should be opened with Ghana Commercial Bank, a state-owned bank,” Jinapor stated.
The Minister confirmed that ECG has met all these conditions, leading to a significant improvement in the flow of funds to crucial institutions, including independent power producers (IPPs), fuel suppliers, GRIDCo, and the Volta River Authority (VRA). This consistent flow of cash, Jinapor added, has been a critical factor in the “relative stability of electricity supply across the country in recent months.” He further noted that “The mechanism puts in place a minimum guarantee when it comes to payments to the IPPs. This has also contributed largely to the stable power that we currently experience.”
Ruth Abla ADJORLOLO
